ACCEPTING ACH PAYMENTS
What is an ACH Payment?
ACH is the acronym for Automated Clearing House. ACH payments are electronic credits or debit transfers that allow consumers to make payments from bank accounts for mortgages, utilities, and other types of bills. Most payment processors offer ACH debit options to their customers for monthly and subscription-based transactions. Many businesses prefer to accept ACH payments from their customers rather than debit or credit cards.
Accept ACH Payments Through YapStone
YapStone leverages innovative risk management technologies that enable companies to safely accept ACH payments online. This lets companies focus on their core business and avoid the hassle of accepting and issuing paper checks. They also benefit from seamlessly managing the reporting and reconciliation associated with ACH payments.
Accepting ACH Payments in Industries Dominated By Checks
YapStone is focused on delivering the convenience of electronic payments by offering multiple payment solutions and payment methods, including the ability to accept ACH payments online. At YapStone, we differentiate ourselves with an innovative API payment solution combined with extensive industry experience and expertise. Partnering with YapStone means accepting ACH payments easily and without fuss.
How Does ACH Work?
There are a number of steps involved in accepting ACH payments, more commonly known as e-Checks, from your customers:
Step 1: User Initiates Online Payment via ACH
The user engages with information on one of YapStone’s web pages, payment apps or other ACH payment processing systems to pay rent, pay HOA dues, make a donation, reserve a room in an inn or B&B, or book a vacation home rental. The user selects eCheck from a range of online payment methods, and provides information such as name, bank account number, and bank routing number before submitting a payment.
Step 2: YapStone to Payment Processor
YapStone batches the accumulated ACH transaction details for the day’s e-check payments and transmits them to its payment processor in an ACH file.
Step 3: Payment Processor to ACH Network to User Bank
The payment processor delivers the items to its bank, known as the Originating Depository Financial Institution (ODFI), which sends them through the ACH network. The details are then relayed to the user’s bank (known as the RDFI, or Receiving Depository Financial Institution) for posting.
Step 4: User’s Receiving Bank
The e-check debits post to the user’s account. Funds are usually available to the merchant within 3-5 business days. Upon logging in, the merchant can see if e-check payments are processing, cleared, or reversed. YapStone merchant reports showing ACH activity details for reconciliation purposes become available when ACH batches are sent to the bank. These include the Transaction Activity Report, Transaction Summary Report and a Recapture Statement.
Step 5: Payment Processor to ACH Network to YapStone
If the transaction does not post, YapStone is notified via the same chain, with the receiving bank (RDFI) sending the e-check item back to the ACH network. The ACH network delivers it back to the ODFI/processor, which notifies YapStone that the transaction was not successful. Returned item notification can take several business days as the ACH Network is not an instantaneous system.
Because the transaction may be returned due to non-sufficient funds (NSF), funds provided to the merchant will need to be recovered. If this happens, YapStone passes along the non-sufficient funds fee charged by the RDFI to the merchant along with the un-posted item. The NSF fee goes through the same channels as the returned item: from the RDFI, through the ACH network, followed by the ODFI/payment processor, and finally to YapStone before going to the merchant.
Why Accept ACH Payments with YapStone?
When you work with YapStone you’re looked at as a valued partner rather than a customer. It’s a major reason why so many types of companies of all sizes, from property management companies to vacation rental owners to non-profits to inns & B&Bs, accept ACH payments through us. Of course, it helps that we’re considered experts in the industries we work in, not to mention our innovative payment and risk management platform and the recognition that comes from processing over 8-billion dollars in electronic payments every year.